STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The content in this Q&A may have been affected by this change. What is a prohibited name? The rule is that a director of a company that goes into liquidation cannot use the name of that company in liquidation in a new business for five years, or he risks criminal and/or civil penalties. For further guidance see Practice Note: Prohibited names under section 216 of the Insolvency Act 1986. What is the available exemption? Under rule 4.228 of the Insolvency Rules 1986 if a director of an insolvent company who wishes to re use a prohibited name purchases the whole or substantially the whole of the business of that company under arrangements with its liquidator, or by an office holder